TSMC Raises Revenue Forecast Amid Surging AI Chip Demand

TSMC rides AI demand to raise revenue forecast, says no to US joint venture

Taiwan's TSMC, the world's largest contract chipmaker, raised its full-year revenue forecast on Thursday given surging demand for chips used in artificial intelligence, and rejected the idea of a joint venture factory in the United States. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc and Nvidia supplier, has benefited from the global AI boom that has helped it weather the tapering off of pandemic-led electronics demand. The bellwether for the chip industry earlier on Thursday posted net profit that beat market expectations. It raised its 2024 revenue forecast to growth of slight to above the mid-20% range in U.S. dollar terms, versus a previous prediction of an increase in the low to mid-20% range. "AI is so hot; right now everybody, all my customers, want to put AI functionality into their devices," Chairman and CEO C.C. Wei told analysts and reporters at an earnings conference. The company's U.S.-listed shares rose 3.3% in pre-market trading following the results. Its Taiwan-listed shares closed down 2.4% before the earnings announcement, extending falls this week after U.S. Republican presidential candidate Donald Trump said that Taiwan "did take about 100% of our chip business" and should pay the U.S. for its defence. The United States has about 10% of the world's chip manfacturing capacity, down from 19% in 2000, according to the Semiconductor Industry Association, a group representing the U.S. chip industry. Taiwan has about 18%, down from 22% in 2000. TSMC is spending $65 billion on three plants in the U.S. state of Arizona and has other new factories in operation or planning stages in Japan and Germany, which have partner investors. Asked if TSMC would consider a joint venture in the United States following Trump's comments, Wei said no. "So far we did not change any of our original plans of expansion of our overseas fabs. We continue to expand in Arizona, in Kumamoto, and maybe in future in Europe. No change in our strategy. We continue in our current practice," he added. On whether TSMC has enough capacity to support the demand for chips, he said things were "very, very tight". "We are working very, very hard to get enough capacity to support my customers from now all the way to next year, to 2026." CFO Wendell Huang said supply for leading edge nodes, including its 3nm and 5nm, would remain very tight next year. SMARTPHONE CHIPS DEMAND For the current quarter, TSMC said its revenue would increase by as much as 34%, in a range of between $22.4 billion to $23.2 billion. The company adjusted its capital expenditure plans for this year to between $30 billion and $32 billion, compared with a previous forecast of $28 billion to $32 billion. TSMC's April-June net profit climbed to T$247.8 billion ($7.60 billion) from T$181.8 billion a year earlier. The profit beat a T$238.8 billion estimate for the quarter ended June 30, according to an LSEG SmartEstimate drawn from 21 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. "Moving into the third quarter of 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies," Huang said. Second-quarter revenue at TSMC, Asia's most valuable publicly listed company, rose by 33% to $20.8 billion, better than the company's previous forecast of $19.6 billion to $20.4 billion. ($1 = 32.6000 Taiwan dollars)

TSMC smashed second quarter expectations due to AI chip demand

Taiwan Semiconductor Manufacturing Company topped analysts' expectations for the second quarter, reporting revenue of $20.82 billion for fiscal year 2024 -- up 40% from a year ago. The Taiwanese chipmaker reported NT$247.85 billion in profits this quarter, or $7.6 billion, a 36% rise from the year ago period. That beat analysts' expected income of NT$236.4 billion, or $7.3 billion, for the second quarter of 2024, according to FactSet analysts' estimates -- a 30% increase from a year ago, when it reported profit of NT$181.8 billion. TSMC, which has an exclusive partnership with AI chip designer Nvidia and fabricates chips for Apple, has seen its shares rise nearly 70% so far this year. In a call with analysts, TSMC's chief executive officer C.C. Wei said that AI is "so hot" right now, and that all of the company's customers want to put AI capabilities into their devices. He added that he expects production will catch up with demand by 2025 or 2026, but that supply will remain tight until then. "I also tried to reach the supply and demand balance, but I cannot today," he said. "The demand is so high I had to work very hard to meet my customers' demand." Taiwan-listed shares of the chipmaker ended Thursday down 2.43%. TSMC predicted in April its second-quarter sales could rise by up to 30% -- higher than projected -- due to demand from its customers including Nvidia and Apple. It set second-quarter revenue expectations to between $19.6 billion and $20.4 billion, higher than the earlier estimated $19.1 billion. TSMC also said it was keeping plans to spend up to $32 billion this year, a majority of which will go toward advanced technologies. In June, TSMC said its net revenue in May rose 30% year-over-year to $7.1 billion. While that was a decrease of 2.7% from April, the company's revenue for the period of January through May saw a year-over-year increase of 27%. TSMC chairman and chief executive C.C. Wei reaffirmed previous projections in June that the chip market, excluding the memory sector, would experience 10% growth this year driven by the AI boom. Global chip stocks, including TSMC's, fell Wednesday morning following news of the Biden administration's reported consideration of tougher trade restrictions and remarks by former President Donald Trump on Taiwan. TSMC's Taiwan-listed shares were down 2.4% at the market close. The Biden administration is reportedly debating using an export control called the foreign direct product rule on allies including Japan and the Netherlands if their companies continue selling advanced chipmaking technology to China.

TSMC Raises Outlook as Profit Beats Estimates on Surging Chip Demand -- 2nd Update

Taiwan Semiconductor Manufacturing Co. raised its sales outlook after better-than-expected quarterly profit, as demand for its advanced chips continued to surge amid enthusiasm over artificial intelligence. The world's largest contract chip maker said Thursday that its second-quarter net profit rose 36% from a year earlier to 247.85 billion New Taiwan dollars (US$7.61 billion). That exceeded the NT$235.12 billion estimate of analysts polled by FactSet. Revenue for the quarter rose 40% to NT$673.51 billion after its June revenue climbed 33%. TSMC said sales from its high-performance computing segment, which includes AI chips, jumped about 28% from the previous quarter, while sales from smartphones fell 1% and those from its Internet-of-Things segment rose 6%. The company guided for third-quarter revenue of US$22.4 billion to US$23.2 billion, signaling its confidence in a continuing AI boom. "The demand is so high, I had to work very hard to meet customer demand," TSMC Chairman and Chief Executive C.C. Wei said on the earnings call, adding that the company hopes to strike a supply-and-demand balance in 2025 or 2026. Projecting a strong 2024, TSMC also raised its full-year revenue growth guidance to slightly above mid-20% in U.S. dollar terms from a low- to mid-20% range previously. The Taiwanese company, which counts Nvidia and Apple as clients, produces roughly 90% of the world's most advanced chips. Investors have pushed shares of the chip maker to all-time highs, driven by bets the AI frenzy is set to continue. Its Taiwan-listed shares have risen nearly 70% this year, outperforming the benchmark Taiex's 30% gain. Last week, its American depositary receipts rose to a record, briefly pushing the company's market value past US$1 trillion. However, geopolitical concerns remain an overhang for TSMC and the broader semiconductor industry. TSMC's stocks came under pressure ahead of the earnings report and overnight on Wall Street following remarks by U.S. presidential candidate Donald Trump. He took aim at Taiwan's chip-production dominance, saying the island should pay the U.S. for defense in an interview with Bloomberg Businessweek. The simmering threat of a Chinese invasion and the emergence of chip manufacturing as a geopolitical priority have pushed the company to become more geographically spread out. TSMC is spending billions on building new factories overseas, including three plants in Arizona for more than US$65 billion. A report that the Biden administration is considering new restrictions on chip companies doing business in China helped fuel pessimism. Shares of the company dropped another 2.4% in Taiwan trading Thursday as semiconductor stocks broadly fell. Its ADRs in New York slumped 8.0%, their biggest one-day percentage drop in more than four years, amid a selloff in U.S. technology stocks.

TSMC Beats Profit Estimates on Surging Chip Demand -- Update

Taiwan Semiconductor Manufacturing Co. reported a 36% rise in second-quarter profit as it continued to witness surging demand for its advanced chips, with enthusiasm over artificial intelligence sending the chip maker's shares to record highs recently. The world's largest contract chip maker said Thursday that net profit rose 36% from a year earlier to 247.85 billion New Taiwan dollars (US$7.61 billion) for the three months ended June. That exceeded the NT$235.12 billion consensus estimate from a FactSet poll of analysts. Second-quarter revenue rose 40% to NT$673.51 billion after its June revenue climbed 33%. TSMC's operating profit margin was 42.5% for the quarter, up 0.5 percentage points from a year earlier. TSMC said revenue from its high-performance computing segment, which includes AI chips, rose about 28% from the previous quarter, while revenue from smartphones fell 1% and revenue from its Internet-of-Things segment rose 6%. The Taiwanese company, which counts Nvidia and Apple as clients, produces roughly 90% of the world's most advanced chips. Investors have pushed shares of the chip maker to all-time highs, driven by bets the AI frenzy is poised to continue. Its Taiwan-listed shares have risen nearly 70% this year, outperforming the benchmark Taiex's 30% gain. Last week, its American depositary receipts rose to a record, briefly pushing the company's market value past US$1 trillion. The company guided for third-quarter revenue of US$22.4 billion to US$23.2 billion, with its operating profit margin expected between 42.5% and 44.5%. However, geopolitical concerns remain an overhang for TSMC and the broader semiconductor industry. TSMC's stocks came under pressure ahead of the earnings report and overnight on Wall Street following remarks by U.S. presidential candidate Donald Trump. He took aim at Taiwan's chip-production dominance, saying the island should pay the U.S. for defense in an interview with Bloomberg Businessweek. The simmering threat of a Chinese invasion and the emergence of chip manufacturing as a geopolitical priority have pushed it to become more geographically spread out. TSMC is spending billions on building new factories overseas, including three plants in Arizona for more than US$65 billion. A report that the Biden administration is considering new restrictions on chip companies doing business in China helped fuel pessimism. Shares of the company dropped another 2.4% in Taiwan trading Thursday after its ADRs in New York slumped 8.0%, their biggest one-day percentage drop in four years.

TSMC second-quarter profit beats expectations as AI chip boom continues

TSMC offices in San Jose, California, US, on Thursday, April 18, 2024.David Paul Morris | Bloomberg | Getty Images Taiwan Semiconductor Manufacturing Company on Thursday beat revenue and profit expectations in the second quarter, as demand for advanced chips used in AI applications continue to surge. Here are TSMC's second-quarter results versus LSEG consensus estimates: TSMC reported net revenue rose 40.1% from a year ago to NT$673.51 billion, while net income increased 36.3% from a year ago to NT$247.85 billion. The firm guided second-quarter revenue to be between $19.6 billion and $20.4 billion. Surging demand for advanced chips used in AI applications has boosted TSMC's Taiwan-listed shares by nearly 70% so far this year. TSMC is the world's main producer of advanced chips found in everything from smartphones to AI applications, though rivals such as Samsung and Intel have been trying to challenge its dominance. It counts Apple and Nvidia among its clientele. The chip giant currently produces 3-nanometer chips and plans to commence mass production of 2-nanometer chips in 2025. Typically, a smaller nanometer size yields more powerful and efficient chips. "The demand for generative AI is surging in the cloud and at the edge. TSMC's N3 process boasts good yield rates and well-managed production lines. The market is well-funded, and regional political factors drive increased demand for advanced processes," Brady Wang, associate director of Counterpoint Research, said on Friday ahead of the results. Wang said the capacity of the 3-nanometer process is expected to more than double in 2024 compared to the previous year. Needham analysts on Monday said they expect TSMC to raise its 2024 revenue growth target, reiterating a "buy" rating and raising the price target to $210 from $168 on the chip giant's U.S.-listed shares. "We expect TSMC to raise its 2024 revenue growth outlook from 'low- to mid-20s' to 'mid- to high-20s' but maintain its 2024 [capital expenditures] target at $30 billion on the upcoming earnings call," Needham said in a note. TSMC held 62% of global foundry market share in the first quarter, up from 59% in the same period a year ago, according to Counterpoint Research data.

TSMC Q2 profit beats expectations on robust AI demand By Investing.com

Investing.com-- Taiwan Semiconductor Manufacturing Co, or TSMC (TW:2330), clocked a stronger-than-expected profit in the second quarter, as it continued to see stellar demand for semiconductors from the artificial intelligence industry. The world's largest contract chipmaker posted a net profit of T$247.85 billion ($7.6 billion), compared to Reuters expectations for a profit of T$236.1 billion. The firm, which ranks technology giants NVIDIA Corporation (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL)L among its clients, had earlier in July posted stronger-than-expected revenue for the second quarter, which jumped 40% to T$673.51 billion. TSMC benefited greatly from surging AI demand over the past year, as a slew of tech giants raced to roll out their own offerings after the success of OpenAI's ChatGPT. The high computing requirements of AI. This saw a bulk of TSMC's revenue come from "advanced technologies," which consist of wafer sizes of 7-nanometre and above. TSMC saw a stellar rise in valuation over the past year on strong demand from AI, which also saw the firm's American Depository Receipts (NYSE:TSM) reach a total market capitalization of over $1 trillion. The firm is also considered as a bellwether for the global chipmaking industry, given that it has the highest capacity for producing advanced chips in the industry. The firm is currently spending billions on building new facilities in the U.S. state of Arizona.

TSMC tops quarterly expectations with 40%+ revenue growth - SiliconANGLE

Strong demand for artificial intelligence chips helped Taiwan Semiconductor Manufacturing Co. grow its revenue by 40.1% year-over-year in the second quarter. The company today reported sales of 673.51 billion New Taiwan dollars, or $20.82 billion, for the three months ended June 30. That's up from NT$480.84 billion a year earlier. TSMC exceeded the consensus revenue forecast by more than NT$15 billion and topped its own sales guidance as well in the process. The world's largest contract chipmaker detailed that more than half of its sales, or 52%, came from its high-performance computing revenue segment. The segment includes, among other products, the AI chips that TSMC manufactures for Nvidia Corp. Smartphones accounted for 33% of sales, 1% less than in the second quarter of 2022. The five-nanometer manufacturing process that TSMC launched four years ago continues to be its bestselling node. It accounted for 33% of the company's sales. The node was followed by TSMC's latest three-nanometer technology, which had a 15% share of revenue in the second quarter. The three-nanometer process launched in late 2022 and has since been adopted by Apple Inc. to make its latest iPhone chips. The increased demand that TSMC logged in the second quarter helped boost its profitability. The company generated net income of NT$247.85 billion in the three months through June 30, a 36.3% increase compared with the second quarter of 2023. Analysts had expected NT$238.8 billion. Next quarter, TSMC expects to generate between $22.4 billion and $23.2 billion in revenue. That's compared with $17.3 billion a year earlier. Chief Executive Officer C.C. Wei said in the company's earnings call that this growth will be driven by increased demand for smartphone and AI processors. Customers are ordering AI chips at a faster rate than TSMC can make them. Wei cautioned that it could take up to two years for the company's manufacturing capacity to catch up with demand. "The supply continues to be pretty tight, all the way through 2025," he said. "I hope in 2025 or 2026 we can reach the balance." The executive detailed that the current supply imbalance is the result of a shortage in CoWoS production capacity. CoWoS is the hardware that TSMC uses to link together the memory and logic, or processing, components of Nvidia's graphics processing units. The technology connects a GPU's memory and logic modules by placing them on a common base layer called an interposer that is itself a semiconductor. Wei revealed that TSMC has more doubled its CoWoS production capacity in the past year to address demand. The company could double it again this year, he added. In parallel, TSMC is working to roll out its latest two-nanometer manufacturing process, which is expected to come online next year. In 2027, TSMC plans to introduce an even more advanced node that will use so-called system-on-wafer technology. The technology makes it possible to create processors the size of an entire silicon wafer. Startup Cerebras Systems Inc. uses a system-on-wafer node that TMSC launched in 2020 to make its flagship WSE-3 machine learning chip, which features four trillion transistors. The next-generation node that TSMC plans to introduce in 2027 is set to introduce several major improvements. Most notably, it will provide the ability to integrate wafer-scale chips with other semiconductor modules during manufacturing. TSMC envisions customers using the node to equip their supersized processors with HBM memory, a type of high-speed RAM used by GPUs to store AI models' data.

TSMC second-quarter net profit jumps on Gen AI demand

AFP - Chip giant Taiwan Semiconductor Manufacturing Company (TSMC) said yesterday net profit jumped by more than a third in the second quarter of 2024, buoyed by global demand for generative artificial intelligence products. TSMC - whose clients include Apple and Nvidia - controls more than half the world's output of silicon wafers, used in everything from smartphones and cars to missiles. Following the runaway success of ChatGPT, the company is now at the forefront of a generative artificial intelligence (AI) revolution, churning out the world's most advanced microchips needed to power products made by Silicon Valley. The firm said it made TWD247.8 billion (USD7.6 billion) in April-June, up 36 per cent from TWD181.8 billion in the same period last year. Second-quarter revenues rose 32 per cent on-year to USD20.82 billion, it added in a statement. "Our business in the second quarter was supported by strong demand for our industry-leading three-nanometre and five-nanometre technologies, partially offset by continued smartphone seasonality," said TSMC's Chief Financial Officer and senior vice president Wendell Huang in an earnings conference. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies." The company expects its third-quarter revenue to jump to USD23.2 billion, above expectations, according to Bloomberg News. It also lifted its full-year capital expenditure outlook to USD30-USD32 billion from a previous estimate of USD28-USD32 billion. This month the company briefly broke the USD1 trillion market capitalisation barrier, putting it ahead of Tesla as the seventh most valuable technology firm. The share price of several major AI companies - including TSMC - dropped on Wednesday following reports that the United States was mulling strict curbs on firms that continue allowing China access to advanced chip tech. TSMC has launched new factories overseas, including three planned in the United States, while one opened in Japan this year with another on the way. Experts called the Japan plant "the most significant TSMC international investment to open in many years".

Apple, Nvidia Supplier TSMC Reports Strong Q2 Results Amid Booming Demand For AI Chips, Guides Q3 Above Consensus: 2024 To Be 'Strong Growth Year,' Says CEO

North American-based customers contributed 65% of the total revenue, while China accounted for 16%. Taiwan Semiconductor Manufacturing Company Ltd. TSMC reported strong revenue and earnings growth for the second quarter, which came in above estimates, buoyed by robust demand for AI chips used in hyper-performance computing. The company also issued upbeat guidance for the third quarter. TSMC's Key Q2 Numbers: Hsinchu, Taiwan-based TSMC reported consolidated second-quarter revenue of NT$673.51 billion ($20.82 billion), up 40.1% year-over-year. Sequentially, the top line expanded by 13.6%. In dollar terms, the revenue growth was 32.8% year-over-year and 10.3% quarter-over-quarter. Revenue topped the NT$657.58 billion LSEG consensus estimates, according to CNBC. The sequential revenue growth was aided by strong demand for 3-nanometer and 5-nm technologies, partly offset by continued smartphone seasonality, the company said. High-performance computing and smartphone end markets accounted for 52% and 33% of net revenue, respectively. IoT, automotive, digital consumer electronics and others made up of 5%, 2% and 2%, respectively. HPC revenue climbed 28% sequentially, while smartphone revenue declined 1%. North American-based customers contributed 65% of the total revenue, China 16%, Asia-Pacific 9%, Japan 6% and EMEA 4%. Net income and earnings per share climbed a more modest 36.3% each to NT$247.85 billion and NT$9.56 per share ($1.48 per ADR unit), respectively. On a quarter-over-quarter basis, net income rose 9.9%. Analysts, on average, expected a net profit of NT $238.8 billion. Margin Profile: The company said in a statement that its gross margin, operating and net profit margin were at 53.2%, 42.5% and 36.8%, respectively. Here's how margins compare to the prior-year period. Source: Company release See Also: Best Tech Stocks Right Now Shipments of the most advanced 3-nanometer processor node tech accounted for 15% of the total wafer revenue, while 5-nm and 7-nm processors made up 35% and 17% of the revenue, respectively. These advanced and more advanced technologies together made up 67% of the total wafer revenue. Look Ahead: Chairman and CEO C.C. Wei said on the earnings call that "I also try to reach the supply and demand balance, but I cannot. Today, the demand is so high I had to work very hard to meet customer demand," CNBC said. "I hope sometime in 2025 or 2026, I can reach the balance." The top brass expects business to be supported by strong smartphone and AI-related demand in the third quarter, adding that they continue to expect 2024 to be "a strong growth year for TSMC." The company guided third-quarter revenue of $22.4 billion to $23.3 billion, up from the $17.3 billion reported a year ago. TSMC recently hit the $1-trillion market-cap mark amid an AI-fueled rally, but the stock has comes off its recent peak. Wednesday, the NYSE-listed ADR of the company ended down 7.98% at $171.20, according to Benzinga Pro data, weighed down by comments from Republican presidential nominee Donald Trump regarding his stance on Taiwan, and the Biden administration's warning of further China chip curbs, which clouded the outlook for the sector. Read Next: Nvidia, TSMC, ASML Holding, Netflix, Tesla: Why These 5 Stocks Are On Investors' Radars Today Photo by Ivan Marc via Shutterstock Market News and Data brought to you by Benzinga APIs

TSMC Posts Stronger Second-Quarter Profit on Chip Demand

Taiwan Semiconductor Manufacturing Co.'s second-quarter net profit jumped on surging demand for advanced chips amid the global artificial-intelligence boom. The world's largest contract chip maker said Thursday that net profit rose 36% from a year earlier to 247.85 billion New Taiwan dollars (US$7.61 billion) for the three months ended June. That exceeded the NT$235.12 billion consensus estimate from a FactSet poll of analysts. Second-quarter revenue rose 40% to NT$673.51 billion after its June revenue climbed 33%. TSMC's operating profit margin was 42.5% for the quarter, up 0.5 percentage point from a year earlier. Investors have pushed shares of the Taiwanese chip maker to all-time highs, driven by bets the AI frenzy is poised to continue. Its Taiwan-listed shares have risen nearly 70% this year, outperforming the benchmark Taiex's 30% gain. Last week, its American depositary receipts that trade in New York rose to a record, briefly pushing the company's market value past US$1 trillion.

TSMC's Q2 Earnings, Revenue Beat Amid AI Chip Boom

TSMC shares gained in early trading Thursday before turning lower, extending Wednesday's losses on worries about how stricter trade restrictions and geopolitical tensions could affect the semiconductor industry. Taiwan Semiconductor Manufacturing Company (TSM) posted second-quarter results that beat analysts' estimates amid surging demand for artificial intelligence (AI) chips. TSMC reported revenue 40% higher than the same time last year at 673.51 billion New Taiwan dollars ($20.62 billion), more than analysts had expected. Profits rose just over 36% year-over-year to NT$247.85 billion ($7.59 billion), exceeding estimates. On a per-share basis, TSMC earned NT$9.56 per share, or $1.48 per ADR, also beating projections. TSMC said it expects sales for the third quarter of between $22.4 billion and $23.2 billion, which would be growth of about 30% to 33% from the $17.28 billion TSMC reported last year. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," TSMC CFO Wendell Huang said. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies." TSMC American depositary receipts (ADRs) gained in early trading Thursday following the release before turning lower later in the session, extending Wednesday's losses on worries about how tightening trade restrictions and geopolitical tensions could impact the semiconductor industry.

TSMC quarterly profit soars 36%, beating expectations - ET Telecom

TAIPEI: TSMC posted a 36% jump in second-quarter net profit on Thursday that beat market expectations as the Taiwanese chipmaker rides a wave of demand for semiconductors used in artificial intelligence applications. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc and Nvidia supplier, has benefited from a surge towards adoption of AI that has helped it weather the tapering off of pandemic-led electronics demand. TSMC's April-June net profit climbed to T$247.8 billion ($7.60 billion) from T$181.8 billion a year earlier. The profit beat a T$238.8 billion forecast for the quarter ended June 30, according to an LSEG SmartEstimate drawn from 21 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. TSMC, Asia's most valuable publicly listed company, said second-quarter revenue rose 33% year-on-year to $20.8 billion, better than the company's previous forecast of $19.6 billion to $20.4 billion. The company last week announced second quarter revenue in Taiwan dollars, coming in at T$673.51 billion. Capital expenditure in the second quarter was $6.36 billion, TSMC said, compared with $5.77 billion in the first quarter. TSMC's Taipei-listed shares have been battered for the past two days after comments by the Republican candidate for the U.S. presidency, Donald Trump, that Taiwan "did take about 100% of our chip business" and should pay the U.S. for its defence. They closed down 2.4% on Thursday.

TSM's stock rises as AI demand boosts outlook; No change in strategy amid Trump's comment

Taiwan Semiconductor Manufacturing's (NYSE:TSM) stock rose about 2% on Thursday after second quarter results beat estimates and third quarter revenue outlook was seen above estimates, amid a surge in demand for chips used for AI products. TSM CEO C. C. Wei said that so far the company has not changed its original plan for expansion overseas. The company continues to expand in Arizona, maybe in future in Europe, and that there was no change in strategy. The remarks came in response to a question related to geopolitical risks and comments by former President Trump's comments that Taiwan "should pay us for defense." Second quarter net revenue grew 32.8% year-over-year to $20.82B (NT$673.51B, +40.1% Y/Y). EPS per American Depositary Receipt, or ADR, was $1.48, compared to $1.14 in the second quarter of 2023. Both top and bottom line numbers surpassed analysts' expectations. Net income grew 36.3% year-over-year to NT$247.85B. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," said TSM's Senior VP and CFO Wendell Huang. CFO Wendell Huang said on the company's earnings call that amid the growing AI-related demand, the company was narrowing its CapEx range for 2024 to $30B to $32B, compared to $28B to $32B provided previously. Of the total, between 70% and 80% of the capital budget will be allocated for advanced process technologies, about 10% to 20% will be spent for specialty technologies and about 10% will be spent for advanced packaging, testing, mask making and others, Huang noted. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies," said Chairman and CEO C.C. Wei. Wei maintained the forecast for the 2024 overall semiconductor market, excluding memory, to increase by about 10% year-over-year. Wei said that over the past three months, the company has seen AI and high-end smartphone demand from its customers, compared to three months ago, leading to increasing overall capacity utilization rate of 3nm and 5nm process tech in the second half of 2024. TSM continues to expect 2024 a strong year for the company, Wei added. Wei noted TSM was raising its full year 2024 revenue to increase slightly above mid-20% in U.S. dollar terms, compared to low to mid-20% provided during the first quarter earnings call in April. TSM noted that 3nm process technology contributed 15% of total wafer revenue in the second quarter of 2024, versus 0% in the year ago period, and 9% in the first quarter of 2024. The 5nm process technology accounted for 35% of total wafer revenue in the second quarter, compared to 30% in the same period a year ago, and 37% in the first quarter of 2024. Meanwhile, 7nm accounted for 17% of total wafer revenue in the second quarter versus 23% a year earlier, and 19% in the first quarter of '24. Advanced technologies (7nm and below) accounted for 67% of total wafer revenue. Q2 Revenue by Platform: High Performance Computing, or HPC, represented 52% of net revenue, versus 44% a year earlier, and 46% in the first quarter of 2023. Smartphone represented 33% of net revenue, which was similar to the year ago period, and 38% compared to first quarter of 2024. Revenue by Geography: In the second-quarter, revenue from China -- the second-biggest market by revenue for TSM -- accounted for 16% of the total net revenue, up from 12% in the year-ago period and 9% in the first quarter of 2024. North America remained the largest market with 65% of total net revenue coming from it, compared to 66% a year earlier, and 69% in the first-quarter of 2024.

TSMC shares rise for Apple and Nvidia supplier thanks to AI boom

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc and Nvidia supplier, has benefited from the global AI boom that has helped it weather the tapering off of pandemic-led electronics demand. The bellwether for the chip industry earlier on Thursday posted net profit that beat market expectations. It raised its 2024 revenue forecast to growth of slight to above the mid-20% range in U.S. dollar terms, versus a previous prediction of an increase in the low to mid-20% range. "AI is so hot; right now everybody, all my customers, want to put AI functionality into their devices," Chairman and CEO C.C. Wei told analysts and reporters at an earnings conference.

TSMC Gains on Q2 Earnings, Revenue Beat Amid AI Chip Boom

TSMC shares gained Thursday morning following the release, a day after TSMC and other semiconductor stocks tumbled on worries about how stricter trade restrictions and geopolitical tensions could affect the semiconductor industry. Taiwan Semiconductor Manufacturing Company (TSM) American depositary receipts (ADRs) gained Thursday after the chipmaker reported second-quarter results that beat analysts' estimates amid surging demand for artificial intelligence (AI) chips. TSMC reported revenue 40% higher than the same time last year at 673.51 billion New Taiwan dollars ($20.62 billion), more than analysts had expected. Profits rose just over 36% year-over-year to NT$247.85 billion ($7.59 billion), exceeding estimates. On a per-share basis, TSMC earned NT$9.56 per share, or $1.48 per ADR, also beating projections. TSMC said it expects sales for the third quarter of between $22.4 billion and $23.2 billion, which would be growth of about 30% to 33% from the $17.28 billion TSMC reported last year. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," TSMC CFO Wendell Huang said. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies." TSMC ADRs were 2.4% higher at $171.20 as of 8:45 a.m. ET Thursday following the news, a day after TSMC and other chip stocks tumbled on worries about how tightening trade restrictions and geopolitical tensions could impact the semiconductor industry.

TSMC quarterly profit soars 36%, beating expectations

TAIPEI (Reuters) -TSMC posted a 36% jump in second-quarter net profit on Thursday that beat market expectations as the Taiwanese chipmaker rides a wave of demand for semiconductors used in artificial intelligence applications. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc and Nvidia supplier, has benefited from a surge towards adoption of AI that has helped it weather the tapering off of pandemic-led electronics demand.

TSMC profit rises 36pc but stocks down after Trump comments

This comes after the Taiwanese chipmaker entered the trillion-dollar club last week, thanks to soaring shares as a result of skyrocketing demand for AI chips. Taiwan Semiconductor Manufacturing Company (TSMC) has seen its net profit grow by 36.3pc in its latest quarterly earnings over the same period last year, beating analyst estimates. In its earnings report published today (18 July), TSMC said that its revenue stood at NT$673.51 billion in its second quarter of 2024 ended 30 June. This represents a more than 40pc rise in quarterly revenue over the same period last year. Revenue also increased 13.6pc over the previous quarter. Total revenue for the first quarter of the year between January and March stood at more than NT$592bn, an increase of 16.5pc compared to the same period in 2023. This comes after the Taiwanese chipmaker entered the trillion-dollar club last week, thanks to soaring shares as a result of skyrocketing demand for AI chips. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," said Wendell Huang, senior vice-president and chief financial officer at TSMC. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies." TSMC, the world's largest contract chipmaker that provides services to the likes of Nvidia, AMD, Qualcomm and Apple, now expects revenue to be anywhere between $22.4bn and $23.2bn in its third quarter. The global surge in AI demand that has seen major tech company values reach record heights in recent months has also benefitted the Taiwanese company's revenue, contributing to a major chunk of the $4.8bn foreign investment in Taiwan's stock market so far this year, according to Reuters. Nvidia, for instance, has had recent success in producing graphics processing units, or GPUs, that power AI models, seeing its revenue skyrocket and making it the world's third most valuable tech company by market cap. In early April, the US said it is awarding TSMC billions of dollars in subsidies and loans to boost semiconductor production in the country as part of a broader goal of improving its share in the chips market. While TSMC has performed better than expected in its earnings, the chipmaker has seen its stock prices take a hit following a Bloomberg report that the US is considering tighter restrictions for exports of advanced semiconductor technology to China. Following the report, the stock prices of various chipmakers and related companies were impacted including ASML, Nvidia, Tokyo Electron, Arm, AMD and Qualcomm. The stock prices were impacted further from a recent interview with former US president Donald Trump, who told Bloomberg that Taiwan should pay the US for protection from China - raising concerns about US support for Taiwan should Trump win the upcoming presidential election. Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.

TSMC Q2 profit rises 36%, better than forecast

TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC posted a 36% rise in second-quarter net profit on Thursday that beat market expectations as it rides a surge in demand for semiconductors used in artificial intelligence applications. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple and Nvidia supplier, saw April-June net profit rise to T$247.8 billion from T$181.8 billion a year earlier. The profit beat a T$238.8 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate. (Reporting by Yimou Lee and Faith Hung; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman)

TSMCs Q2'24 Results: Best Quarter Ever as HPC Revenue Share Exceeds 52% on AI Demand

Taiwan Semiconductor Manufacturing Co. this week said its revenue for the second quarter 2024 reached $20.82 billion, making it the company's best quarter (at least in dollars) to date. TSMC's high-performance computing (HPC) platform revenue share exceeded 52% for the first time in many years due to demand for AI processors and rebound of the PC market. TSMC earned $20.82 billion USD in revenue for the second quarter of 2024, a 32.8% year-over-year increase and a 10.3% increase from the previous quarter. Perhaps more remarkable, $20.82 billion is a higher result than the company posted Q3 2022 ($20.23 billion), the foundry's best quarter to date. Otherwise, in terms of profitability, TSMC booked $7.59 billion in net income for the quarter, for a gross margin of 53.2%. This is a decent bit off of TSMC's record margin of 60.4% (Q3'22), and comes as the company is still in the process of further ramping its N3 (3nm-class) fab lines. When it comes to wafer revenue share, the company's N3 process technologies (3nm-class) accounted for 15% of wafer revenue in Q2 (up from 9% in the previous quarter), N5 production nodes (4nm and 5nm-classes) commanded 35% of TSMC's earnings in the second quarter (down from 37% in Q1 2024), and N7 fabrication processes (6nm and 7nm-classes) accounted for 17% of the foundry's wafer revenue in the second quarter of 2024 (down from 19% in Q1 2024). Advanced technologies all together (N3, N5, N7) accounted for 67% of total wafer revenue. "Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. "Moving into third quarter 2024, we expect our business to be supported by strong smartphone and AI-related demand for our leading-edge process technologies." TSMC usually starts ramping up production for Apple's fall products (e.g. iPhone) in the second quarter of the year, so it is not surprising that revenue share of N3 increased in Q2 of this year. Yet, keeping in mind that TSMC's revenue in general increased by 10.3% QoQ, the company's shipments of processors made on N5 and N7 nodes are showing resilience as demand for AI and HPC processors is high across the industry. Speaking of TSMC's HPC sales, HPC platform sales accounted for 52% of TSMC's revenue for the first time in many years. The world's largest contract maker of chips produces many types of chips that get placed under the HPC umbrella, including AI processors, CPUs for client PCs, and system-on-chips (SoCs) for consoles, just to name a few. Yet, in this case TSMC attributes demand for AI processors as the main driver for its HPC success. As for smartphone platform revenue, its share dropped to 33% as actual sales declined by 1% quarter-over-quarter. All other segments grew by 5% to 20%. For the third quarter of 2024, TSMC expects revenue between US$22.4 billion and US$23.2 billion, with a gross profit margin of 53.5% to 55.5% and an operating profit margin of 42.5% to 44.5%. The company's sales are projected to be driven by strong demand for leading-edge process technologies as well as increased demand for AI and smartphones-related applications.